November 10, 2011

Hindalco Industries LtdInvestor Presentation

Q2 FY12

2

Highlights & Financial Performance

Performance Review & Outlook

Presentation Structure

Projects Update

Highlights and Financial

Performance

3

4

H1 FY12: Highlights

Aluminium

India

India

Copper

smelter

Novelis

Steady performance despite severe cost

pressures

Projects progressing well

Strong operating performance though

production impacted by shutdown

EBIT

5%

EBIT

14%

Momentum continues on the back of

higher EBITDA per ton

Adj.

EBITDA

10%

Standalone Results at a glance…

5

` Cr H1 FY11 H1 FY12 Change (%)

Net Sales 11,038 12,303 11

PBITDA 1682 1,890 12

PBT 1,229 1,407 14

PAT 968 1,147 18

EPS (`) 5.06 5.99 18

` Cr Q2 FY11 Q2 FY12 Change (%)

Net Sales 5,860 6,272 7

PBITDA 780 845 8

PBT 556 604 9

PAT 434 503 16

EPS (`) 2.27 2.63 16

Performance Review & Outlook

6

Key Business Drivers and Impact

Driver

Change ( %)

H2 FY 12 Vs H2 FY 11

Impact

Aluminium LME

Average20

Copper TC/RC >20

Exchange

Rate (`/$)(2)

Indian coal prices 30

7

Al: Business Environment

8

2089 2343 2500 2603 2399

97,097

1,05,110

1,13,1761,16,387

1,09,754

60000

70000

80000

90000

100000

110000

120000

1200

1400

1600

1800

2000

2200

2400

2600

2800

Q2 FY11

Q3 FY11

Q4 FY11

Q1 FY12

Q2 FY12

LME$/t `/t

Input prices continued to remain

strong…..

India specific challenges:

Coal cost increase

Regional disturbances affecting

production

Monsoon rains impacting raw material

quality & availability

While LME has started to

soften….

Cost pressures have

continued …

Aluminium Demand: Perceptible

slowdown

9

Global demand holding steady so far …

Daily World Al. Consumption (kt)

109 132128

0

20

40

60

80

100

120

140

Ja

n-0

9

Ma

r-09

Ma

y-0

9

Ju

l-09

Se

p-0

9

No

v-0

9

Ja

n-1

0

Mar-

10

Ma

y-1

0

Jul-10

Se

p-1

0

No

v-1

0

Ja

n-1

1

Ma

r-11

Ma

y-1

1

Ju

l-11

Se

p-1

1

But projections suggest slowdown

in world consumption growth

2011

(Est.)

9.1%

2012

(Jul.

proj.)

8.6%

2012

(Oct.

proj.)

6.5%

Source: Industry estimates

Growth moderation in India

Stagnant demand in H1 FY 12

Demand uncertainty

across several segments,

Especially rate sensitive

Al: Operational Performance

10

688 667

H1 FY11 H1 FY12

Alumina (kt)264

284

H1 FY11 H1 FY12

Aluminium (kt)

69.93

Alumina production affected by

bauxite availability & quality …

… Metal production up 8%

But we sold more specials

H1 FY11 H1 FY12

51% 38%

49% 62% Specials

Standard

Composition of Hydrate / Alumina sales

Maximize domestic sale of metal

H1 FY11 H1 FY12

87% 89%

ExportDomestic

Aluminium Business: Financial Performance

11

Q2 FY11 Q2 FY12 Change

(%)

Net Sales &

Operating Revenue1,911 2,213 16

EBIT 424 429 1

(` cr)

H1 FY11 H1 FY12 Change

(%)

Net Sales &

Operating Revenue3,778 4,306 14

EBIT 976 1,028 5

(` cr)

LME outlook remains clouded

12

Continued

excess supply

conditions

• World production expected to exceed demand

by 0.8 mn tones in 2011, 1.2 mn tones in 2012

Macro risks

accentuated

• Recurring episodes of risk aversion

• Vulnerability of Europe and US to negative

events

Cost pressures

• Upward shift in cost curve likely to provide a

floor to LME

• 90th percentile of cost curve at $2,500; may lead

to closures if LME remains ~2,200 for long

Large

overhang of

inventory

• Global inventory ~86 days of consumption

• However, financing deals likely to survive for

now as interest rates remain low

Novelis H1 Performance

13

1,483 1,489

0

200

400

600

800

1000

1200

1400

1600

H1 FY11 H1 FY12

Shipments nearly flat …(kt)

Adj. EBITDA up 10%

300

350

400

450

500

550

600

650

H1 FY11H1 FY12

554

607($ mn)

Shipments Down 2% to 720 Kilotonnes

Net Sales Up 14% to $2.9 Billion

Strong Adjusted EBITDA Up 3% to $301 Million

Free Cash Flow Before CapEx of $237 Million

Liquidity of $993 Million

Net Income of $120 Million

Three large mill expansions (Brazil 220 kt, Korea 350 kt and North

America 200 kt) on track and budget

Novelis Update (Q2 FY12)

14

Strong Second Quarter Results

15

(Millions)

Novelis: Adjusted EBITDA Trend

Driving Consistent & Predictable Results

291 238

280306 301

$800

$850

$900

$950

$1,000

$1,050

$1,100

$1,150

$0

$50

$100

$150

$200

$250

$300

$350

Q2FY11 Q3FY11 Q4FY11 Q1FY12 Q2FY12

TTM EBITDAQuarterly EBITDA

Qu

art

erl

yT

TM

Copper: Operational Performance

Impact of lower production was offset

by …

170

148

50

70

90

110

130

150

170

190

H1 FY11 H1 FY12

Cathode Production (kt)

Copper production down 13%

16

Stronger Tc/Rc

Higher by-product credits

Copper Production lower due to

planned shutdown

Focused Marketing approach

Delivered robust performance despite internal challenges

Copper Business: Financial Performance

17

Q2 FY11 Q2 FY12 Change

(%)

Net Sales &

Operating Revenue3,951 4,062 3

EBIT 129 148 15

(` cr)

H1 FY11 H1 FY12 Change

(%)

Net Sales &

Operating Revenue7,265 8,002 10

EBIT 253 293 16

(` cr)

ABML Update

18

Nifty Sulfide Production declined 23%

due to sharp fall in ore grade

29,491

22,562

2.83

2.32

2

2.1

2.2

2.3

2.4

2.5

2.6

2.7

2.8

2.9

0

5000

10000

15000

20000

25000

30000

35000

H1 FY11 H1 FY12

Ore Grade (%)

44.6

14.9

H1 FY11 H1 FY12

EBIT - impacted by lower

production, cost pressures and

AUD strength

AUD (Mn)

Mt Gordon operations re-started in June, ramp-up in progress

Cu in conc. (Tones)

Copper: Consumption moderating but Tc/Rc

likely to be under pressure

19

1.2

6.2

20

14.114.1

29.528.2

21.119.2

15.912.312.3

9.0

Far East Spot TCRC (c/lb)

LME under pressure due to macro

risks and growth concerns

World refined copper consumption

expected to grow 4.4% in 2011 (vs.

11.3% last year)

4000

5000

6000

7000

8000

9000

10000 LME Cu ($/t)

7,347

Spot TCRCs moving back to levels

prior to earthquake in Japan – on

account of mine strikes

Weak trend in spot TCRC may have

a bearing on contract negotiations

for 2012

Our three strategic pillars enabling us face

this challenging environment

20

Cost

Leadership

Balanced

PortfolioVAP Focus

Our Position on

cost curve getting

affected by India-

specific cost

rigidities

Expected to help in a

downturn

Novelis and India-

Copper far less

affected than

upstream businesses

Slowdown impacting

demand in certain

segments (India

FRP, copper rods)

Greenfield projects to

help re-affirm cost

leadership

We remain committed

to our medium-term

VAP targets

Conversion businesses

on even stronger

footing now than in

2008/09

Projects Update

21

Greenfield Projects Update

Project ProgressExpected

completion

Mahan Aluminium, MP

•Gearing for commissioning• 16,500 people at site •Forest clearance for coal block awaited• Applied for tapering linkage for coal

Early 2012

Utkal Alumina, Orissa

• 10,000 people at site• Boiler #1 hydrostatic test completed

Second half 2012

Aditya Aluminium, Orissa

•Construction progressing• ~7,000 people working on project• Financial closure for debt portion being pursued

Early 2013

Aditya Refinery, Orissa

• Majority land acquired• Construction power line energized

2014

Jharkhand Aluminium

• Land acquisition started• 55 MCM water allocated by State Govt

2015

22

Activity at Sites: Mahan smelter

Pot room “A” inside view Pot room “B” inside view

Central PassageAlumina Silos

23

Activity at Sites: Mahan CPP

24

Unit # 1 and 2 CHP TP-04

DM PlantCooling Tower

Activity at Sites: Utkal

Precipitation area STG1: EOT Crane erection

25

Predisilication Area Digestion area

Project Scope

Hirakud Smelter Expansion II213 ktpa to 360 ktpa, 500 MW additional power capacity

Belgaum special alumina 189 ktpa to 301 ktpa with coal-based co-gen

Brownfield Projects Update

Project Progress Expected completion

Hirakud Smelter Expansion I

• Strong progress• ~90% procurement completed• Civil work in advanced stage

Early 2012

Hirakud FRP• ~2,800 people at site• Placement of equipments in progress Early 2012

26

Brownfield projects on the drawing board

Activity at Sites: Hirakud FRP

Cold Mill Erection Cold Mill Coil Inspection System

Slitter FoundationHot Mill Table Roll Foundation

27

Thank you

28

29

Certain statements in this report may be “forward looking statements”

within the meaning of applicable securities laws and regulations. Actual

results could differ materially from those expressed or implied.

Important factors that could make a difference to the company’s

operations include global and Indian demand supply

conditions, finished goods prices, feed stock availability and

prices, cyclical demand and pricing in the company’s principal

markets, changes in Government regulations, tax regimes, economic

developments within India and the countries within which the company

conducts business and other factors such as litigation and labour

negotiations. The company assume no responsibility to publicly

amend, modify or revise any forward looking statement, on the basis of

any subsequent development, information or events, or otherwise.

Forward Looking & Cautionary Statement

Aluminium Production

In Tonnes Q2FY11 Q2FY12 Variance

Alumina 347,071 332,383 -4%

Metal 123,325 143,315 8%

FRP 54,042 52,439 -3%

Extrusions 9,637 7,154 -26%

Wire Rods 24,158 24,442 1%

Copper Production

Production lower due to bi-annual shutdown

Production Units Q2 FY11 Q2 FY12 variance

Copper Cathodes MT 94,104 74,588 (21%)

CC Rods : Own MT 43,274 33,972 (21%)